Small Business Bankruptcy In New Jersey: Subchapter 5
Deciding to declare bankruptcy is challenging for many business owners in Westfield. Efforts are being made to reduce the stress and financial burden of small business bankruptcy in New Jersey.
At the Law Offices of Darin D. Pinto, P.C., Mr. Pinto and his dedicated team understand the challenges you face, and their goal is to provide legal assistance and a guiding hand through the entire process. Having served clients in Westfield and Union County for over 32 years, the firm’s team ensures that your case receives comprehensive attention.
What Is Subchapter 5 Bankruptcy?
Subchapter 5 bankruptcy refers to a specific chapter of the U.S. Bankruptcy Code, namely Chapter 11, Subchapter V. It was introduced as part of the Small Business Reorganization Act (SBRA) in 2019 to make the bankruptcy process more accessible and affordable for small businesses.
What Are The Benefits Of Subchapter 5 Bankruptcy?
This specialized bankruptcy code chapter holds distinct benefits for struggling companies in Westfield and Union County considering small business bankruptcy in New Jersey, including:
- Streamlined processes with reduced administrative burdens
- Ownership retention and the ability to stay open
- Debt modification options without any required creditor consent
- No disclosure statement is required
- Administrative expenses can be paid over the life of the plan
- There may be the option to pay lower-priority creditors first
Regardless of your business nature, you are better off hiring a skilled bankruptcy lawyer to handle all your legal matters.
What Are The Eligibility Requirements For Subchapter 5 Bankruptcy?
Small business bankruptcy in New Jersey may involve Subchapter 5 when the business:
- Is actively engaged in business activities
- Holds total debt not surpassing $2.75 million, excluding debts to company insiders
- Has a minimum of 50% of the business debt from operational activities
Subchapter 5 bankruptcy attorney services from Darin D. Pinto can help you determine which form of bankruptcy suits your needs.
Pinto Knows Bankruptcy; Call Him Today
Call 908-913-6168 or use the online contact form to schedule a free consultation with a dedicated bankruptcy attorney. Mr. Pinto and his team are passionate about helping businesses overcome financial hurdles.